Short Notes on Sukanya Samriddhi Account (SSA)

 Sukanya Samriddhi Account (SSA)

 

Interest Payable, Rates, and Periodicity

Interest Rate: 8.2% per annum (effective from 01.01.2024).

Interest Calculation: Compounded yearly and credited at the end of each financial year.

Minimum Deposit: ₹250 per financial year.

Maximum Deposit: ₹1,50,000 per financial year (in multiples of ₹50).

Deposits can be made in lump sum or multiple installments with no limit on the number of deposits in a month or year.

 

Salient Features

(a) Who Can Open

1. Eligibility:

•  By a guardian in the name of a girl child below 10 years of age.
•   Only one account can be opened in the name of a girl child across India (Post Office or Bank).

2. Family Limit:

•  Maximum of two accounts per family.
•  In the case of twins/triplets, more than two accounts can be opened.

 

(b) Deposits

1. Account Opening:

•  Minimum initial deposit: ₹250.

2. Annual Deposit Requirements:

•  Minimum: ₹250.
•   Maximum: ₹1,50,000 (in multiples of ₹50) per financial year.

3. Deposit Period: Deposits can be made up to 15 years from the date of account opening.

4. Defaulted Account:

• If the minimum ₹250 is not deposited in a financial year, the account becomes defaulted.

• Revival: Pay a minimum deposit of ₹250 + ₹50 default fee per defaulted year before completion of the 15-year deposit period.

5. Tax Benefits:

 

• Deposits qualify for deductions under Section 80C of the Income Tax Act.

 

(c) Interest

1. Quarterly Interest Updates:

• The rate is notified by the Ministry of Finance every quarter.

2. Calculation:

• Interest is calculated monthly on the lowest balance between the 5th day and the end of the month.

• Credited yearly at the end of the financial year.

3. Transfer of Account:

o Interest is credited to the account at the end of the financial year, irrespective of transfers between Post Office and Bank.

4. Tax-Free:

• Interest earned is exempt from tax under the Income Tax Act.

 

(d) Operation of Account

The account is operated by the guardian until the girl child attains the age of 18 years.

 

(e) Withdrawal

1. Conditions:

• Withdrawal is allowed after the girl child turns 18 years or completes the 10th standard.

2. Limits:

• Up to 50% of the balance available at the end of the preceding financial year.

3. Frequency:

• Withdrawals can be taken as a lump sum or in installments (maximum of one per year for a total of five years).

• Subject to actual requirements for fees or other expenses.

 

(f) Premature Closure

1. Permitted Conditions:

• After 5 years from the account opening date:

 

Death of account holder: From the date of death, the account earns interest at the PO Savings Account rate.

Extreme Compassionate Grounds:

Life-threatening illness of the account holder.

Death of the guardian operating the account.

2. Procedure:

• Submit a prescribed form along with supporting documentation and passbook at the concerned Post Office.

 

(g) Closure on Maturity

1. Time frame:

• After 21 years from the date of account opening.

• Or upon the marriage of the girl child after attaining 18 years of age.

• Marriage Restriction:

Closure is not allowed before 1 month or after 3 months from the date of marriage.

2. Procedure:

• Submit the prescribed application form and passbook at the Post Office.